Professional Documents
Culture Documents
Policy
Institute
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The ATM
Policy
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The ATM
Policy
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The monopoly status of ANSPs has also, at times, The problems associated with the monopoly
led to management complacency and created a status of ANSPs are reinforced by ownership
culture of resistance to change in the workforce. and governance structures. Many ANSPs are
This often manifests itself in entrenched resistance government departments or are in some other
and staff opposition to any significant changes, way publicly controlled. This can mean that they
frustrating efforts to introduce reforms. For example, often incentivised to meet political and State-
despite endeavours to consolidate the airspace, driven objectives, and are more answerable to the
it remains highly fragmented in many parts of the demands of their government owners than to the
world, thereby complicating the processes for needs of the airline customers.
aircraft transitioning between ANSPs and, in some
cases, between sectors within the same ANSP.
Under-
Current performance
industry Creates of ATM
structure behaviours industry
Historic monopoly status Weak incentives to improve This includes:
performance
Weak economic regulation High prices
Resistance to change
Government control Inefficient expenditure
Management respond to
Fragmented airspace
demands of government
rather than airline Lack of transparency
customers Slow adoption of new
technologies
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The ATM
Policy
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The ATM
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The ATM
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Oceanic services
There is significant potential for competition
between providers in oceanic airspace. The
increasing use of automation in this airspace,
including self-separation, enables aircraft
Franchised en-route services to take over much of the traditional role of
There is scope for competition between controllers. Instead, ANSPs could compete
ANSPs for the contract to provide ATM with each other to provide individual airlines
services in a specific country or a sector with the necessary data to enable them
within a country. Similar to TANS, the to self-separate and plan their routes over
successful ANSP would then have the oceanic airspace. This could be extended to
exclusive right to provide en-route (and the provision of ADS-B data for free-routing,
potentially approach) services in the airspace where this exists. As with competition for
for a fixed period, subject to meeting specific en-route services discussed above, it is
performance indicators. also possible for many sectors of oceanic
airspace to be competitively tendered.
This model has been adopted in upper
Kosovan airspace and in the Middle East,
where private contractors provide ATM
services using the government-owned
infrastructure. The model means that the
State maintains ultimate control of the
airspace, thereby avoiding any concerns
Liberalisation
about the State’s ability to exercise will provide
sovereignty over its own airspace.
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The ATM
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Longer-term
In the longer-term, technological advances (such
as those emerging from the NextGen program in
the US and SESAR in Europe) and the successful
introduction of competition in ATM may enable
competition to be expanded into other areas of an
ANSP’s activities, including further competition
for the provision of en-route services. It is worth
noting that the delivery and design of ATM services
may also change as the aircraft avionics become
increasingly sophisticated. This would allow much
of the work that has historically been performed on
the ground to be more accurately performed in the
Flow management cockpit.
Flow management relates to the optimisation
of the flows of traffic across the network,
or particular regional or airport-level parts
of the network, using the surveillance and
communications infrastructure.
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The ATM
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For competition to be effective, ANSPs ANSPs worldwide found that the change in
should operate as corporatised entities structure resulted in, amongst other benefits,
a greater focus on the needs of the ANSPs’
In order for competition in ATM to be successful,
customers, improvements in service quality and a
ANSPs need to act like commercial entities.
reduction in costs.8
Currently, many ANSPs remain closely controlled by
their governments, meaning they do not have the
autonomy or flexibility to respond to competition.
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Appendix: Precedent for liberalisation
1
Performance Review Body ‘PRB White Paper:
RP3 Performance Objectives’ June 2016
2
ATAG ‘Revolutionising Air Traffic Management:
Practical Steps to Accelerating Airspace Efficiency
in Your Region’ November 2012
3
CANSO ‘Global Air Navigation Service Performance
Report 2015 – The Industry View’ 2015
4
Performance Review Body ‘PRB Annual Monitoring
Report 2014’ 2015; Eurocontrol Central Route
Charging Office, adjusted unit rates applicable to
August 2016 flights
5
Helios ‘Study into Air Navigation Service to be
Opened to Competition in Norway: Part 1’ 2015
6
Thompson, I, Pech, R et al ‘An Assessment of
Delivery Changes for UK Terminal Air Navigation
Services’ in Journal of Air Transport Management 57
(2016)
7
ICAO ‘Manual on Air Navigation Service Economics’
2013; IATA ‘Commercialisation of Air Navigation
Service Providers’ 2007; CANSO ‘Guide to Separation
of Service Provision and Regulation’ 2013
8
McDougall, Glen and Roberts, Alasdai ‘Commercializing
Air Traffic Control: Have the Reforms Worked?’ 2007
9
See, for example, Nardotto, M, Verboven, F and Velletti, T
‘Unbundling the Incumbent: Evidence from UK Broadband’
in Journal of the European Economic Association April
2015; Australian Competition and Consumer Commission
‘Changes in the Prices Paid for Telecommunications
Services In Australia 2012-13’ 2014
10
Competition and Markets Authority ‘Competition in
Passenger Rail Services in Great Britain: Discussion
Document’ 2015
11
Communication from the European Commission ‘ The
Fourth Railway Package – Completing the Single European
Railway Area to Foster European Competitiveness and
Growth’ 2013
12
International Energy Agency ‘Lessons from Liberalised
Electricity Markets’ 2005
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